Tax governance – a blueprint for tax health

“AN OUNCE of prevention is worth a pound of cure,” said Benjamin Franklin.

Historically, this was said to protect towns from fire risks. Amid rising healthcare costs, we use this familiar saying to explain our evening run or green smoothie. Perhaps it is due time to apply this saying to tax as well.

The tax world has become increasingly challenging. Many companies in Singapore, regardless of size, have cross-border operations and need to consider the interaction of foreign and local taxes. Singapore will implement the Base Erosion and Profit Shifting (BEPS) 2.0 Pillar 2 rules from 2025. These developments, among others, have added complexity to the administration and management of tax risks.